VALLEY CITY, Ohio, Aug. 5, 2013 /PRNewswire/ -- Shiloh Industries, Inc. (Nasdaq: SHLO) today announced it has acquired Contech Castings, a leading provider of high-pressure aluminum die cast parts for the automotive industry. The purchase adds significant capacity and depth to Shiloh's existing high-pressure, high-vacuum casting capabilities with the addition of P2000™ squeeze casting, ThinTech® vacuum casting, and high-pressure conventional die casting.
"One of the necessary advancements for removing weight from vehicles is going to come through increased optimization of aluminum components, which is driving demand for high-pressure, high-vacuum casting and structural squeeze cast components," said Ramzi Hermiz, president and chief executive officer, Shiloh Industries, Inc. "As a leader in this segment of the industry, it made sense for us to strengthen our technology and add capacity with the addition of Contech to further enhance Shiloh's position."
As automakers face pressures to meet the federally mandated fleet average of 54.5 miles per gallon by 2025, low-weight aluminum is quickly becoming part of the lightweighting solution. For every 10 percent reduction in vehicle weight, there is a 5 to 7 percent reduction in fuel consumption.
Shiloh provides design, engineering and manufacturing of first operation blanks, engineered welded blanks, complex stampings, modular assemblies and highly engineered aluminum die casting and machined components serving the body-in-white, chassis, emission, powertrain, structural and seating needs of OEM and Tier 1 customers. The acquisition of Contech Castings allows Shiloh to offer more options in casting technologies, and Contech's four locations in Indiana, Michigan and Tennessee are in close proximity to its customers, allowing Shiloh to provide greater value and support."From stamping to laser welding and now expansion of advanced aluminum casting, Shiloh is committed to offering technologies that meet our customers' needs," said Hermiz. "This acquisition creates a unique, deep and talented team of experts that offer new solutions for lightweighting challenges." This is Shiloh's latest move in a history of adding new process capabilities that follow the company's key tenets of leading with technology and innovation, achieving sustainable, global, profitable growth and acting with a sense of purpose and speed. About Shiloh Industries, Inc. Headquartered in Valley City, Ohio, Shiloh Industries is a leading provider of lightweighting and noise, vibration and harshness (NVH) solutions to automotive, commercial vehicle and other industrial markets. Shiloh delivers these solutions through design, engineering and manufacturing of first operation blanks, engineered welded blanks, complex stampings, modular assemblies and highly engineered aluminum die casting and machined components serving the body-in-white, emission, powertrain, structural and seating needs of OEM and Tier 1 customers. The company has multiple locations across North America, including in Georgia, Indiana, Kentucky, Michigan, Ohio, Tennessee, Wisconsin and Mexico, and has approximately 1,770 employees. Forward-Looking Statements Certain statements made by Shiloh Industries, Inc. in this release and other periodic oral and written statements, including filings with the Securities and Exchange Commission, regarding the Company's operating performance, events or developments that the Company believes or expects to occur in the future, including those that discuss strategies, goals, outlook or other non-historical matters, or which relate to future sales, earnings expectations, cost savings, awarded sales, volume growth, earnings or general belief in the Company's expectations of future operating results are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. The forward-looking statements are made on the basis of management's assumptions and expectations. As a result, there can be no guarantee or assurance that these assumptions and expectations will in fact occur. The forward-looking statements are subject to risks and uncertainties that may cause actual results to materially differ from those contained in the statements. Some, but not all of the risks, include the ability of the Company to accomplish its strategic objectives with respect to implementing its sustainable business model; the ability to obtain future sales; changes in worldwide economic and political conditions, including adverse effects from terrorism or related hostilities; costs related to legal and administrative matters; the Company's ability to realize cost savings expected to offset price concessions; the Company's ability to successfully integrate acquired business; inefficiencies related to production and product launches that are greater than anticipated; changes in technology and technological risks; increased fuel and utility costs; work stoppages and strikes at the Company's facilities and that of the Company's customers or suppliers; the Company's dependence on the automotive and heavy truck industries, which are highly cyclical; the dependence of the automotive industry on consumer spending, which is subject to the impact of domestic and international economic conditions, including increased energy costs affecting car and light truck production, and regulations and policies regarding international trade; financial and business downturns of the Company's customers or vendors, including any production cutbacks or bankruptcies; increases in the price of, or limitations on the availability of, steel, the Company's primary raw material, or decreases in the price of scrap steel; the successful launch and consumer acceptance of new vehicles for which the Company supplies parts; the occurrence of any event or condition that may be deemed a material adverse effect under the Credit Agreement or a decrease in customer demand which could cause a covenant default under the Credit Agreement; pension plan funding requirements; and other factors, uncertainties, challenges and risks detailed in the Company's other public filings with the Securities and Exchange Commission. Any or all of these risks and uncertainties could cause actual results to differ materially from those reflected in the forward-looking statements. These forward-looking statements reflect management's analysis only as of the date of this release.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV